The Mini Hydro Power Project (MHPP) represents a continuation of
development co-operation in the mini hydro sector started in 1991.
Indonesia is blessed with an abundance of water resources, which if
properly harnessed can provide rural communities with a clean and valuable
source of energy. Mini hydro potential, which is particularly suitable for
supplying electricity to remote rural areas, is estimated at around 500 MW
of which only 21 MW have been exploited. Through MHPP the utilization
of mini hydro power shall contribute to the overall goal of a sustainable
development. To improve the living conditions of the population (defined
as income and employment), rural communities and small and medium
enterprises (SME) were facilitated to utilize hydroelectric power to an
increasing degree for productive purposes. To achieve this, MHPP
focuses in the current project phase (05/2002-04/2005) on the following 4
main objectives:I. Transfer Of Know-How
The fundamental requirement enabling sustainable development of
mini hydro power projects is a comprehensive technical competence to
identify, plan, implement and commission schemes fulfilling certain
technical standards. The first of four main-objectives in the current project
phase is to continue providing technical support and know-how to the MHP
equipment suppliers and contractors facilitating independent
implementation of projects.
II. Facilitate Access To Funding
Despite the improving economic environment for renewable energy
projects in Indonesia, access to project finance through the Indonesian
banking sector is extremely difficult. The second objective of MHPP aims
to address this problem by establishing access to suitable sources of
financing for mini hydro power projects.
III. Support Income Generating End-Uses
The provision of an energy source in rural areas besides improving
the basic living conditions of the communities should also support
economic development contributing to poverty alleviation. The third
objective of MHPP is therefore to support implementation of exemplary mini
hydro power projects linked to productive end-uses stimulating income
generation in the respective locations.
IV. Encourage Networking And Experience Sharing
The fourth objective is through various media, disseminate the
experiences of the project to as broad an audience as possible at
national, ASEAN-wide and international levels.
As foreign direct
investments (FDI) are the most important source of finance for developing
countries, an additional objective of the project is to identify and
initiate appropriate "Public Private Partnerships" (PPP). PPPs are
projects combining private business interests with governmental
developmental goals in a way that supports both partners in fulfilling
their objectives more efficiently.
For European businesses and their
sister companies abroad MHPP provides an infrastructure in the field,
regional and sector know-how, contacts to Government authorities, NGOs,
other relevant institutions, as well as experience in planning, consulting
and project implementation.
In exchange we would expect long-term
commitments for economic engagement, transfer of know-how and human
resource development from prospective European partners. We would be happy
to receive your ideas.
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